Court Splits Agency Removal Powers

The Court ruled the removal of Fed Governor Lisa Cook hinged on procedural protections; the majority stated that the President failed to afford Cook the procedural protections to which she was entitled by statute, so a final removal decision could not rightfully be made at that time. "The Court decides this application on the narrow ground that the President failed to afford Cook the procedural protections to which she was entitled by statute."

Cook will remain in her Fed governor post while she challenges the firing, underscoring the Fed's independence and a temporary shield against removal in this specific case.

The decision overturns Humphrey’s Executor, effectively saying presidents can dismiss heads of other independent agencies without cause outside the Federal Reserve, expanding presidential removal power beyond the Fed’s uniquely protected status.

The ruling identifies concrete agencies where removal without cause can occur, including the Federal Trade Commission (Rebecca Slaughter), the National Labor Relations Board, the Merit Systems Protection Board, and the Consumer Product Safety Commission, signaling a broadening of presidential removal authority outside the Fed.